MakeMyTrip(US:MMYT)2022-01-25 19:10Financial Data and Key Metrics Changes - The company reported total gross bookings of $1,155.7 million, marking a growth of 95% year-on-year and 8.5% quarter-on-quarter, the highest since the pandemic [35][36] - Adjusted operating profit reached $13.2 million, nearly doubling from $6.6 million in the previous quarter and 2.6 times higher than $5.2 million in the same quarter last year [35][36] - Adjusted operating cash profit for the quarter was approximately $7.6 million, the highest achieved to date [35] Business Line Data and Key Metrics Changes - The air ticketing segment saw an adjusted margin of $52.9 million, representing a 105.9% increase year-on-year and a 38.4% increase quarter-on-quarter [36] - The hotels and packages business recorded an adjusted margin of $54.1 million, up 17.6% year-on-year and 53.6% quarter-on-quarter [36] - The bus ticketing business, led by the redBus brand, achieved an adjusted margin of over $14.1 million, a 58.4% increase year-on-year and a 79.1% increase quarter-on-quarter [36] Market Data and Key Metrics Changes - Domestic travel demand showed strong recovery, with a 94% increase in volume of tickets compared to the same quarter last year [17] - International travel demand remained slow, with notable growth only in the Maldives and Dubai, where bookings increased by 300% compared to pre-COVID times [23][36] - The company maintained a market share of approximately 30% in the domestic air ticketing business and 65-70% in the online bus ticketing segment [50] Company Strategy and Development Direction - The company is focusing on increasing online travel bookings, particularly in Tier 2 and 3 cities, by simplifying the travel planning and booking process [9][10] - Investments in new platforms like myBiz and myPartner aim to tap into new demand segments and enhance the user experience [11][30] - The company is committed to enhancing its product offerings, including the introduction of assurance-driven products and personalized booking experiences [22][31] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for a strong recovery in the travel and tourism industry in 2022, anticipating a rebound in domestic travel following the Omicron wave [11][41] - The company noted that the vaccination coverage in India provides hope for a decline in daily new infections, which could lead to increased travel demand [5][6] - Management highlighted the importance of maintaining cost efficiencies and a strong cash position, with over $450 million in cash and cash equivalents [80] Other Important Information - The company launched a scholarship program for underprivileged students affected by COVID-19 and is working with the government to boost community-based tourism [13] - The company has seen a significant increase in new user acquisition in the GCC region, with a 96% quarter-on-quarter increase [30] Q&A Session Summary Question: Did the business return to pre-COVID levels in Q3? - Management indicated that there were days when air ticketing business recovery reached 90-95% of pre-COVID levels, with strong demand sentiment across domestic travel [46][47] Question: Updates on the advertisement vertical? - The company is continuously investing in its third-party advertisement platform, enhancing product offerings and gaining traction from partners [48][49] Question: What is the commission structure for the cab business? - The cab business operates on a commission or revenue share model, with a focus on improving the overall product experience [52][53] Question: How do you expect margins to move next year? - Management expects margins to remain stable, with air ticketing margins around 6-7% and hotel margins in the high teens, while maintaining a profitable path [77][79] Question: Any update on India listing plans? - The company has no immediate plans for an India listing but remains open to options in the future [82]